Total industrial production increased 1.6% in October (Briefing.com consensus +0.8%) following an unrevised 1.3% decline in September.
The capacity utilization rate rose to 76.4% (Briefing.com consensus 75.9%) from an unrevised 75.2% in September. That was the highest capacity utilization rate since January 2019.
Manufacturing output jumped 1.2%, hitting its highest level since March 2019 on the back of an 11.0% gain in motor vehicles and parts. Excluding the gain in motor vehicles and parts, factory output increased 0.6%.
Motor vehicle assemblies surged 18.8% month-over-month to a seasonally adjusted annual rate of 9.10 million units.
Mining production spiked 4.1% on the recovery from the effects of Hurricane Ida.
The output of utilities rose 1.2%.
Total industrial production was up 5.1% yr/yr, which is the highest reading since December 2019.
The capacity utilization rate of 76.4% was 3.2 percentage points below its long-run average.
The key takeaway from the report is that it points to a lot of latent growth potential when the semiconductor supply shortage, and other supply chain issues, can get worked out.| OCT | SEP | AUG | JUL | JUN | |
|---|---|---|---|---|---|
| Industrial Production | |||||
| Total Index | 1.6% | -1.3% | 0.0% | 0.8% | 0.5% |
| Manufacturing | 1.2% | -0.7% | -0.3% | 1.5% | -0.3% |
| Utilities | 1.2% | -3.7% | 2.9% | -3.1% | 6.1% |
| Mining | 4.1% | -2.3% | -0.6% | 0.4% | 0.2% |
| Capacity Utilization | |||||
| Total Industry | 76.4% | 75.2% | 76.2% | 76.2% | 75.6% |
| Manufacturing | 76.7% | 75.8% | 76.4% | 76.6% | 75.5% |
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